- The definition of a loophole is a very thin opening in a wall, or a way of getting around or out of doing something.
- An example of a loophole is a tiny narrow window in a castle used to shoot through at enemies.
- An example of a loophole is a person not having to pay a certain tax because of the location of their second home.
- a hole or narrow slit in the wall of a fort, etc., for looking or shooting through
- a means of escape; esp., a means of evading or escaping an obligation, enforcement of a law or contract, etc.
Origin of loopholeloop + hole
- A way of avoiding or escaping a cost or legal burden that would otherwise apply by means of an omission or ambiguity in the wording of a contract or law.
- A small hole or slit in a wall, especially one through which small arms may be fired.
Origin of loopholeloop2 + hole.
(third-person singular simple present loopholes, present participle loopholing, simple past and past participle loopholed)
loophole - Investment & Finance Definition
A technicality that allows a law or tax rule to be bypassed without violating the law. The term is commonly used to refer to ways of avoiding paying taxes. When a tax loophole is discovered, the U.S. Treasury attempts to close the loophole and prosecute any current and future offenders.